Tag Archives: FTC Green Guidelines

FTC Finds Company’s “Recyclability” Claims Misleading

Company’s Green Claims for Plastic Lumber Misleading

FTC Order Requires Firm to Have Distributors Take Down Ads With Unsupported Claims

A Wisconsin-based manufacturer of plastic lumber products has agreed to stop making allegedly unsubstantiated claims about the recycled content and recyclability of two of its brands of plastic lumber.

Under the FTC settlement, the company, N.E.W. Plastics Corp., must have credible evidence to support any recycling-related claims it makes, and is required to tell its distributors to remove any marketing material for the two products provided by the company before December 2013.

“Consumers deserve to know the truth about the products they are buying,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. “Many of them want to buy products that are environmentally friendly, but they can’t do that if they get information that’s wrong or unsupported.”

N.E.W. Plastics Corp., which also does business as Renew Plastics, is based in Luxemburg, Wisconsin, and makes plastic lumber products, including the Evolve and Trimax brands, which are used to make items such as outdoor decking and furniture. It sells the products to consumers through distributors.

In its administrative complaint, the FTC alleges that between September 2012 and March 2013, N.E.W. made false and misleading claims while promoting Evolve and Trimax. Specifically, the company claimed:

    * that Evolve products are made from 90 percent or more recycled content;
    * that Trimax products are made from mostly post-consumer recycled content; and
    * that both Evolve and Trimax are recyclable.

The proposed consent order prohibits N.E.W. from making any statements about the recycled content, post-consumer recycled content, or environmental benefits of any product or package unless they are true, not misleading, and are substantiated by competent and reliable evidence, which for some claims must be scientific evidence.

The proposed order also bars N.E.W. from making unqualified recyclable claims about any product or package, unless the product or package can be recycled in an established recycling program, and such facilities are available to at least 60 percent of consumers or communities where the product or package is sold. If N.E.W. can’t meet these requirements, it must qualify the claim regarding the availability of recycling centers. If only part of a product or package is recyclable, N.E.W. must disclose to consumers which part or portion of the product or package is recyclable.

Finally, the proposed order bars N.E.W. from providing anyone else with the means of making false, misleading, or unsubstantiated claims. The order will end in 20 years.

Information for Consumers

The FTC has new information for consumers in a blog post on its website. Also the FTC provides detailed guidance to businesses on environmental claims in its Green Guides.

To read the full article from the FTC go to http://www.ftc.gov/news-events/press-releases/2014/02/companys-green-claims-plastic-lumber-misleading

Can I Claim Biodegradable or Compostable?

There has been a bit of lingering confusion by some regarding the recent updates to the FTC Green Guidelines about marketing products with the terms “biodegradable” and/or “compostable”.  We hope to clear up any remaining confusion that might be out there in this blog.

We feel that the recently updated FTC Green Guidelines have really cleared up the past confusing and often ambiguous guidelines regarding marketing claims of biodegradable and compostable.  The FTC in their updated green guidelines have provided clear explanations and examples of appropriate marketing claims that would eliminate confusion among “green” type of claims being made in the market today.  Claims such as ‘biodegradable’, ‘compostable’ and even ‘recyclable’ have been addressed in the updated FTC Green Guidelines and should eliminate any and all confusion that lingered from earlier guidelines.

So can a company make the claim of “biodegradable?”

The answer is yes!  There are two ways to do so:

A company can claim biodegradable if that material biodegrades with a one year timeframe within the customary disposal environment.  The company making that claim should have reliable scientific data to back up the one year timeframe for biodegradation within the customary disposal environment.

Or, for products that are biodegradable but take longer than one year to biodegrade, (After all, even food waste takes longer than a year to biodegrade in a landfill environment) the claim must be fully qualified.

What does “fully qualified” mean?

It means that a company must include additional information along with the claim of biodegradable.  That additional information includes the environment and timeframe.

This approach also applies to claims of compostable.  Products that use the general claim of compostable must compost in a backyard compost environment and compost very rapidly.  For products that will not readily compost in typical backyard compost environments, the claims would need to be fully qualified to include the type of compost environment and if needed the timeframe.

There is a caveat to this, and that is that many compostable plastics require an Industrial or Commercial Compost Facility in order to properly compost.  These facilities are not readily available to most of the world and so the availability of placing the compostable product into the proper disposal environment should be included in with the marketing claims.

And what about the claim “recyclable”?

Most polymers are technically but unfortunately are not.  With recyclability claims be sure to use a qualified claim if less than 60% of consumers have access to facilities that recycle your product.

The general idea behind the updated FTC green Guidelines is to minimize or prevent confusion about environmental claims being made about a product and/or the products packaging.  ENSO fully supports this approach and we believe it is crucial that green marketing claims are as accurate and complete as possible so not to result in confusing or misleading claims.

If you would like additional information on this subject please feel free to contact us.